Jul. 14, 2006 Presented by Rachel Hsieh Rachel_hsieh2000@yahoo.com.tw Supply Chain Management (SCM) Implementation Methodology & Best 2006 Trainers` Training Agenda • The Introduction of SCM Systems • The Practice of Multi-sites Production Planning • SCM Planning Cycle • SCM Planning Policies • The Points for Attention When SCM Projects Are Implemented 2006 Trainers` Training The Introduction of SCM Systems 2006 Trainers` Training SCM Workflow Order & Order & Production Production Planning Planning Allocation Allocation Planning Planning Forecasting Forecasting Netting Netting Master Master Planning Planning Demand Demand Forecasting & Forecasting & Collaboration Collaboration Order Entry Order Entry Order Order Promising Promising Demand Planning Demand Demand Planning Planning Supply Planning Supply Supply Planning Planning Demand Fulfillment Demand Demand Fulfillment Fulfillment New Orders, Promise Information Forecast Supply Allocation Central Planning Supply Plan Frozen Plan Supply Plan/ Allocations Latest Available to Promise Schedule Ship Date Netted Forecast Local Planning Order Quoting 2006 Trainers` Training Introduction to Planning Systems • Manufacturing environments vary greatly. • A planning methodology that works in one environment may fail in another. • Inadequate analysis often results in inefficient planning. • We will discuss various approaches to planning. 2006 Trainers` Training Characteristics of Some Approaches • Material Requirements Planning • Manufacturing Resource Planning – (MRP II) / Order Launch Schemes • Constraint Based Management – Theory of Constraints – Synchronous Flow Management 2006 Trainers` Training Material Requirements Planning (MRP) • Improvement over reorder point • Dependent demand concept •BOM explosions •Netting • Fixed lead times • Planned orders/ Purchase req. • Order launch Demand Inventory Item Master BOM Explosion/ Netting Planned Orders Purchase Req. Copyright ©1997 i2 Technologies Open Order 2006 Trainers` Training Manufacturing Resource Planning (MRP II) Order Launch • Builds on data of “little MRP” • Adds business strategy integration • Adds rough cut capacity check • Adds resource capacity check • Adds shop floor feedback • Iterative process Copyright ©1997 i2 Technologies Master Planning Rough Cut Capacity MRP Capacity Requirements Planning Shop Floor Control Business Planning Production Planning 2006 Trainers` Training Manufacturing Resource Planning (MRP II) Order Launch Limitations • Batch processing • Uses planned lead times. • Sequentially decomposes solution with long planning cycles • Lacks sensitivity to constraints . – Capacity constraints are accommodated iteratively with material planning as a separate step. – Requirements such as setups are improperly treated. • Work is pushed through the shop, not pulled. • Local optimization 2006 Trainers` Training MRP II Limitations for Planning Master Planning Rough Cut Capacity MRP Capacity Requirements Planning Shop Floor Control Business Planning Production Planning Copyright ©1997 i2 Technologies • Schedule doesn’t account for material and capacity constraints • Plan doesn’t incorporate material shortages • Schedule doesn’t account for material and capacity constraints • No optimization of bottlenecks 1 2 3 4 1 2 3 4 [...]... Data Download 2 FP Plan - Infinite Capacity, Finite Material Plan - Finite Capacity Balance - Finite Scheduling 4 MC - Save Plan - Check material issues 5 Buyer - add/delete PO - expedite material arrival 3 Data Feedback DECISION POINTS 7 Sales -Confirm Schedule Ship date -Confirm Promise Date 2006 Trainers` Training 6 PC - Create MO - Adjust MO part list - Schedule Overtime - Adjust MO Schedule SCM... Model) Customers, Products, Confirmed Orders Supply Chain Data WIP, fixed wafer start plan, Order Backlog Customer Allocation, Order Status FNE Netted Forecast Work Orders MP Exceptional Work Orders ATP/CTP Customers, Products, Backend resources DF Sales Order Info 2006 Trainers` Training Order Promise Order Inquiry ERP/ Legacy DB FP FP FP FP The Practice of Multi-Sites Production Planning 2006 Trainers`... plan to Rhythm ASCII database (actual or simulation) Generate client/user-specific screen using ad files MODIFY PLAN 5 Modify plan using Rhythm tools, updating memoryresident data Summary—Typical Rhythm Planning Cycle Approval Process Execution Systems 13 1 Rhythm What-If Data Files 12 Rhythm Data Files 2 11 3 Run Rhythm Server & Client 4 5 Data Cleanup Material Planning 7 Capacity Planning 6 1 Download... response to the variety of supply/ demand ̇ The time to calculate is shorter than MRP ̇ Reduce planning cycle time ̇ Get more SCM information ̇ Simulation function ̇ Strength SCM process ̇ Reduce inventory 2006 Trainers` Training Adexa’s Unified Environment Also connection to existing order entry front end ATP Users Web Access GRA Server SC Agents (purchasing, etc.) ERP Users Supply Chain Planner Unified... Files Rhythm ASCII Data Files Execution Systems Rhythm MemoryResident Data DOWNLOAD DATA 2 Pull data from ASCII files to memory-resident using spec file mapping Upload ASCII files to execution system 2006 Trainers` Training Copyright ©1997 i2 Technologies RUN CLIENT Generate material-constrained, infinite capacity plan(ICP) CLOSE LOOP 7 5 Modify Plan SERVER STARTUP 3 1 Generate Plan 6 7 Download data from... Also connection to existing order entry front end ATP Users Web Access GRA Server SC Agents (purchasing, etc.) ERP Users Supply Chain Planner Unified Data Server Database API Interface U D S ERP Users Supply Chain Planning UDS = Adexa Unified Data Server Web Access Engine ( SCP ) Decision Analysis User Local Unified Data Server Factory Planning Engine 2006 Trainers` Training Strategic Planner Global Strategic... 4 ELEVATE the system constraint • Step 5 If the constraint is BROKEN, go back to step 1 2006 Trainers` Training Advanced Planning Systems (APS) APS •Concurrent Planning •Constraint-Based Planning •Daily Planning MRP CRP •Bi-direction Propagation •Decision Support Ability 2006 Trainers` Training Detailed Scheduling Why Is MRP Not Enough? • Demand Cannot Be Sorted by Our Prefer Sequence The Demands Can... order quantity • Sort all demands by demand priority • Estimate capacity 2006 Trainers` Training Forecast Policy 1 - Single Request Forecast 1000 DP 10/2005 Profiling MP On the First Day of the Bucket W2 W3 2006 Trainers` Training 1000 Forecast Request W1 W4 W2 W3 W4 Forecast Policy 2 - WEEKLY DP Profiling Forecast 1000 10/2005 MP W2 W3 2006 Trainers` Training 250 250 250 F.Req F.Req F.Req W1 W2 W4... to the continuous improvement process • TOC has application to all industries where there is a flow of information and/or materials 2006 Trainers` Training TOC Fundamental Concepts • Optimization of sub-system components does not equal optimization of the total system • Standard accounting practices diverts attention away from the real problems • A new set of operational performance measurements is required... Training Order Promise Order Inquiry ERP/ Legacy DB FP FP FP FP The Practice of Multi-Sites Production Planning 2006 Trainers` Training SCM Planning Cycle 2006 Trainers` Training Solution Architecture E-Procurement ERP APS FCST Net FCST Net Procure Req PO EDC Quote< >Commit ata gD nin Plan lan nP tio Planning Server duc ro P MO Sc hed ule PO Commit Adapter Adapter Adapter Adapter 2006 Trainers` Training . Rachel Hsieh Rachel_hsieh2000@yahoo.com.tw Supply Chain Management (SCM) Implementation Methodology & Best 2006 Trainers` Training Agenda • The Introduction. Promising Promising Demand Planning Demand Demand Planning Planning Supply Planning Supply Supply Planning Planning Demand Fulfillment Demand Demand Fulfillment Fulfillment New